Shares in the company (Nigerian Breweries) depreciated by 2.6 per cent at market close on Wednesday at N38 per unit.
Net loss at the country’s foremost beer-maker Nigerian Breweries came to N57.2 billion for the first three quarters of the year.The company, half of whose input costs are imported because the bulk of its raw materials come from overseas suppliers, is confronting various bugbears in perhaps its most tumultuous year on record, making operations especially difficult.
Worse still, inflation at over eighteen-year high of 26.7 per cent in the last month of the review period meant costs had to be passed on to consumers and a dramatic fall in the exchange rate of naira to the dollar quickened the costs of foreign exchange transactions including servicing overseas debts.
Net loss on FX transactions jumped more than eight times to N86.8 billion, according to the company’s unaudited financial statements released on Wednesday. “The operating profit was impacted by the lower volumes, higher input costs influenced by inflation and devaluation of the naira, and a one-off restructuring cost. A combination of foreign exchange losses due to the devaluation of the naira and higher interest costs resulted in a net loss during the period.”Nigerian Breweries witnessed a surge in excess of threefold in finance costs, which climbed to N18.9 billion on an increase in interest expense.Loss after tax was N57 billion.
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